When a Company Returns Merchandise to Its Supplier Under a Periodic

question 32

True/False

When a company returns merchandise to its supplier under a periodic inventory system, the Purchases Account is credited.

---

Definitions:

Board of Governors

The executive leadership of the Federal Reserve System, responsible for the formulation of monetary policies in the United States.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy.

Term

A fixed or limited period for which something, e.g., office, investment, or a condition, lasts or is intended to last.

Reserve Ratio

The fraction of deposits a bank must hold in reserve and not lend out, as dictated by central banking regulations.